What are Companies Owned by Exempt Companies?
Companies Owned by Exempt Companies refer to businesses that do not have to file their own Beneficial Ownership Information (BOI) reports because they are wholly owned by entities that are already exempt from BOI reporting. These parent companies may qualify for exemptions under the Corporate Transparency Act (CTA) due to their type of business or regulatory oversight.
However, not all companies qualify for this exemption. Money services businesses, pooled investment vehicles, and certain other categories of entities are explicitly excluded from this exemption. For instance, companies in these excluded categories still have to comply with BOI reporting requirements, even if they are owned by otherwise exempt entities.
This exemption helps reduce the regulatory burden on subsidiaries of already-exempt companies, but it maintains transparency and compliance for those operating in high-risk sectors.
